News in brief

City woes cause 12% drop in BA premium traffic

The crisis in the financial services industry caused another severe fall in business passenger numbers at British Airways last month, the airline admitted yesterday. BA relies on premium passengers for the majority of its profits, according to analysts, and its London to New York route has been particularly badly affected. The airline said premium customer traffic in December fell 12% from the same period in 2007. Total passenger numbers fell 3.4% with the Asia-Pacific region showing the biggest slump, 12.8%. BA chief executive Willie Walsh repeated his call for a third runway at Heathrow.Dan Milmo

Industry faces levy after voluntary scheme fails

The government yesterday announced plans for a £5m-a-year levy on the gambling industry because of the sector's "very disappointing" failure to fully fund treatment for addicts. Publishing a consultation paper, sports minister Gerry Sutcliffe said the money would be used to fund helplines and treatment centres for gambling addicts, as well as research. The government has given the industry has three months to come up with an acceptable voluntary scheme to replace the Responsibility in Gambling Trust, which has operated since 2002, or face a compulsory levy.Andrew Sparrow

Logitech cuts 500 jobs and abandons targets

Logitech, the world's largest computer mouse maker, is cutting 500 jobs or 15% of its workforce as the Swiss business battles with the worsening global recession which has forced the company to abandon its sales and profit targets for 2009. Chief executive Gerald Quindlen said that in the last quarter of the year "the retail environment deteriorated significantly... we are therefore taking actions to align our costs with what is likely to be an extended downturn." The company, which makes computer 'peripherals' such as keyboards and webcams, had already warned on sales in October.Richard Wray

ITV buys 25% stake in Gay Vicars maker

ITV has paid £1.1m for a 25% stake in independent production company Carbon Media, maker of Channel 4's Christmas Day special Decoding the Nativity. The company was established in 2004 by former Panorama producer Mike Smith and Mike Christie, and recently appointed the former creative director of entertainment at Elisabeth Murdoch's production company Shine, Steven D Wright, as its joint creative director. Carbon Media specialises in factual programming, with credits including Channel 4's Gay Vicars and Jump Britain. Forthcoming shows include The Big Arts Project.Leigh Holmwood

BP appoints new head of US operation

BP has appointed Lamar McKay as chairman and president of BP America, replacing Robert Malone, who is retiring after 34 years with the company. McKay is a member of BP's executive management team and leader of the company's special projects team since early last year. He played a leading role in the development of the new governance model for TNK-BP, the company's Russian joint venture where it became involved in a dispute with the other shareholders over policy. Before that McKay was executive vice president and chief operating officer for BP America.Mark Milner